Shree Cement Ltd reported a 72.4% year-on-year (YoY) decline in consolidated net profit to ₹193.72 crore for Q3 FY25, compared to ₹701.85 crore in the same period last year. The decline was primarily attributed to lower sales volume and weaker realizations.
Revenue and operational performance
Revenue from operations stood at ₹4,572.68 crore, marking a 12% YoY decline from ₹5,193.47 crore in Q3 FY24. Total expenses for the quarter slightly increased to ₹4,458.75 crore. EBITDA improved sequentially to ₹947 crore, aided by an increase in premium product sales.
Sales and cost optimization
- Total sales volume fell 1.34% YoY to 8.77 million tonnes, compared to 8.89 million tonnes in Q3 FY24. However, on a quarter-on-quarter (QoQ) basis, sales volume increased 15% from 7.60 million tonnes.
- Power and fuel costs were optimized by 9% sequentially to ₹913 crore, supported by softer fuel prices and operational efficiency.
- EBITDA per tonne improved to ₹1,080, compared to ₹780 in Q2 FY25 but remained lower than ₹1,390 in Q3 FY24.
Capex and expansion plans
Shree Cement continues to expand its capacity, with major projects expected to be commissioned in Q1 FY26, targeting 80+ MTPA capacity by 2028. Key ongoing projects include:
- Jaitaran, Rajasthan – 6.0 MTPA
- Kodla, Karnataka – 3.0 MTPA
- Baloda Bazar, Chhattisgarh – 3.4 MTPA
- Etah, Uttar Pradesh – 3.0 MTPA
The board has declared an interim dividend of ₹50 per share (500%) for FY25.
Brokerage updates
Jefferies maintained a ‘Buy’ rating and raised its target price to ₹30,670 (from ₹29,800), citing a strong beat with industry-best EBITDA per tonne. The company also benefited from strong pricing in northern markets. However, EPS cuts were observed due to aggressive depreciation policy on new expansions.
JP Morgan maintained a ‘Neutral’ rating, slightly increasing its target price to ₹27,367 (from ₹27,300). The firm highlighted value preference driving profitability, strong cost control boosting EBITDA per tonne, and noted that 15 MTPA capacity expansion is on track for Q1 FY26.
Citi maintained a ‘Buy’ rating and raised its target price to ₹31,000. The brokerage noted that Q3 EBITDA at ₹9.5 billion was 15% ahead of estimates due to lower costs. However, YoY EBITDA fell 23% due to lower realizations (-9%) and volumes (-1%), despite an 8% reduction in costs.
Stock performance and key metrics
Shree Cement’s stock was trading at ₹27,175.20, up 1.28%, with an intraday high of ₹27,200.00 and a low of ₹26,682.65. The stock’s 52-week range stands at ₹23,500.00 – ₹30,737.75. The company’s market capitalization is ₹981.17 billion, with an average trading volume of 31.02K shares.
Disclaimer
The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
